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Abstract
The small scale cattle fattening enterprise is represents an important component of the agribusiness sector of the
economy with great economic, income, poverty reduction and social implications. A large number of farmers involved
in cattle fattening just before 3 or 4 months of Eid-ul-Azha (Muslim festival), when they sell the animals with profitable
prices. Cattle fattening for beef production have become an important business of the small farmers in Bangladesh.
This study examined the profitability as well as operational economics efficiency of cattle fattening enterprise of
Rajbari District. Data used to achieve this objective was obtained from 120 nomadic farmers, which were randomly
selected using a multi-stage sampling procedure. Data were generated using a survey schedule as well as direct
observation (cost-route method). Descriptive statistics, economics analysis as well as operational efficiency index
were used to analyze the data. Results showed that small scale cattle fattening enterprise were profitable and
flexible. A net enterprise income of BDT 5559 per cattle was realized by an average enterprise in study area. It was
also shown that operational efficiency was not generally high among the entrepreneur. Based on these results, the
study advised less efficient entrepreneurs to adopt the practices of the efficient ones in order to make the enterprise
more profitable. The study shows that small scale cattle fattening enterprise is profitable due to agribusiness context.
Farmers used three years old cattle for beef fattening. Cattle fattening period is 4.5 months in rural study areas of
Rajbari district in Bangladesh.
Introduction
Bangladesh is a low-lying densely populated country of more than 150 million people, 75% of who live in
rural areas; rural poverty rate is 63%, of which 36% are extreme poor (Hodson R. 2006). Livestock are an
integral component of agriculture in the study area and make multifaceted contributions to the growth and
development in the agricultural sectors. Small scale cattle fattening is an important avenue for income
generation for mainly subsistence farmers in Rajbari District. Cattle farming are an important subsidiary to
agriculture and playing a significant role in rural economy in Bangladesh (Hashem et. al. 1999).The
livestock resources of Bangladesh are mainly based on cattle, goat, sheep, buffalo, and poultry. Although
cattle concentration per unit area is high, their productivity is low mainly due to inadequate feed supply
and low genetic potentiality ( Pandit 2005). As a result their growth performance is very poor. During the
holy Eid-Al Azha festival. Muslims always go for Kurbani (sacrificing slaughtered livestock). Animals
including cows, goats, camels and sheep are slaughtered each year to mark the festival. The meat is then
distributed, with one-third meat by the immediate family and relatives, one-third given away to friends,
and one-third donated to the poor. Bangladesh has the world's third largest Muslim-majority population.
Bangladeshi Muslims celebrate the Eid in every year. About 1.8 million cattle are sacrificed at this time
each year (Sujan et. al. 2011). Cattle fattening for beef production have become an important business of
the small farmers in Bangladesh. In some areas of Bangladesh a small scale commercial cattle fattening
program has already been started. Straw is the important crop residue; contribute the major portion of the
fibrous part of the diet of the beef cattle. Rice straw is the basal feed for ruminants with low nutritive value
and low digestibility. Farmers use rice straw of traditional varieties, green grass, sugarcane tops, wheat
and rice bran, molasses, pulse bran and locally available resources such as pumpkin, carrot, banana,
vegetable by products, rice gruel, boiled rice bran, oil cakes etc for beef fattening. The chemical treatment
of straw is the most effective and economic method to improving the quality. Straw is mainly treated with
urea and molasses and in some cases chemical treatment also done by the farmers. Urea molasses
straw treatment in beef cattle resulted higher body weight, dressing percentage and also in better carcass
quality than untreated straw.
142 Economic study of small scale cattle fattening enterprise
The acute shortage of feeds and fodder has long been identified as a serious constraint to optimum
livestock production in Bangladesh (Saadullah.1995). It is an ancient, vital and renewable natural
resource. Increase socio-economic conditions of Cattle farmer; create employment opportunities for rural
unemployed and landless people. Livestock is contributing up to 80 percent of agricultural GDP; 600
million rural poor people rely on livestock for their livelihoods in our country. Livestock not only sources of
food and income but also the main three pathway of poverty (1) securing the assets of the poor, (2)
improving smallholder and pastoral productivity and (3) increasing market participation by the poor. A
large number of farmers involved in bull fattening just before 3 or 4 months of Eid-Ul-Azha (Muslim
festival), when they sell the animals with profitable prices. A cattle farming is a way of rearing cattle for
profitable production of meat. Cattle fattening package is a four-steps rearing programme of male and/or
infertile female emaciated cattle for harvesting their compensatory growth within a period of 60 to 120
days. Collection of animals considering their body characteristics followed by deworming and feeding cost
effectively up to a profitable rate of live weight gain and marketing them readily are the four major factors
to make the fattening package profitable. It is an easy and profitable system of cattle rearing to alleviate
poverty, unemployment and generate income both for the rural people. Therefore, the present study has
been undertaken specially’
1. To identify the socioeconomic characteristics of cattle fattening farmers of the study areas.
2. To determinate of the economics efficiency of small scale cattle fattening farms in the study area.
The mean farming experience was 13% years farmers are therefore described as experienced and are
expected to have higher efficiency. Forty eight percent of the respondents have cattle farmer holdings of
less than 0.1 ha. This implies that cattle production in the study area is dominated by small scale
production given the average farm size of 0.27%ha for the area. The data on table1 also depicts that a
large parentage (98%) of the respondents have household size of 5 persons and above while less than
2% have household size of less than 5 persons.
Costs and returns to the Cattle fattening enterprise: The costs incurring from cattle fattening were into
main components as direct and indirect cost. Direct cost of cattle fattening comprised various variable
costs such as cost of cattle, feeder, feed, healthcare services etc (Mulla,NI 1997).On the other hand
indirect costs covered depreciation of interested of capital and equipment such as durable Drinkers,
Spade, Bucket, Rakes, wage of labour etc. The significant contribution of cattle fattening activity as
supplemental income source was obviously seen. Table 2 shows that on the average cost of cattle
fattening is Tk 16316 and return Tk 21875 per cattle. After 3-4 months rearing of cattle through fattening
technology, farmer obtained profit Tk 5559 per cattle. It implies that cattle fattening enterprise is profitable
alternative income opportunities in rural areas. Most of the participating farms were satisfied with the
supplemental net income earning from cattle fattening with short duration.
Table 2. Cost and return of cattle fattening per cattle in the study area
Production Cost (BDT) Average Return (BDT) Average
Cost Items <5 >10 cost Return Items <5 Cattle >10 Return
Cattle Cattle (BDT) Cattle (BDT)
Direct Cost: Direct Return:
Purchase of Cattle before 45810 89620 9029
fattening
Purchased feed 17360 31670 3269 Selling price of 99673 199240 19928
fattened Cattle
vet& medicine 2875 4137 467 Sales of 6914 11379 1220
manure
Salt/Potash 750 1278 135 By product 3250 7680 728
sales
Fertilizer 335 746 72
Rent 1355 2689 270
seed/plants
Indirect Cost: Indirect Return
Interest on Capital 5726 11202 1129 Cow/Bulk Sell
Labor 7890 17780 1711
Depreciation 1145 2370 234
Total Cost= 83246 161492 Total Return= 109837 31785
Average Cost = 16316 Average Return = 21875
Net Margin 5559
Source: Field survey data 2010
Economic efficiency: Table 3 shows the result of the factors influencing economic efficiency of cattle
fattening farming in the study area. The coefficient of age, education experience and farm size were
highly significant at 1.0% level of probability. This implies that age, education and farm size had a
negative relationship with economics efficiency among the farmers sampled. The older a farmer
becomes, the more he or she is unable to combine his or her resources in an optional manner given the
available technology. Most of the farmers had little or no education which implies that education is not
costless but requires investment. Lack of education might not be regarded as a factor causing
inefficiency.
Sarma and Ahmed 145
Only if it is costless could we say that it would contribute to improvement in efficiency. This goes against
the findings; the increasing year of formal education increases a farmer’s level of allocative and technical
efficiency which improved their economic efficiency.
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